Updated June 2, 2021
The Bahamas: An Overview
Political and Economic Environment
and it also has procured vaccines through the COVID-19
The Bahamas, a Caribbean nation of some 700 islands off
Vaccines Global Access (COVAX) Facility, a mechanism
the southeast coast of the United States, has been a stable
developed by global health organizations to facilitate
parliamentary democracy since its independence from the
equitable vaccine distribution. The government has been
United Kingdom (UK) in 1973. The country’s bicameral
working to secure additional vaccines from manufacturers.
legislature has a 39-seat House of Assembly directly elected
for five-year terms and a 16-member appointed Senate.
Figure 1. Map of the Bahamas
Since independence, two political parties have alternated in
power, the center-left Progressive Liberal Party (PLP) and
the center-right Free National Movement (FNM). The PLP
was formed in 1953 as an opposition party to the United
Bahamian Party (UBP), which governed the Bahamas when
the country was under British rule. In 1967, the PLP won
control of the government and oversaw the country’s
independence from the UK. It ruled continuously from
1967 until 1992 under the leadership of Lynden Pindling,
commonly referred to as the “father of the nation.” The
FNM was formed in 1971 by former members of the UBP
and dissidents from the PLP. Under the leadership of
Hubert Ingraham, the FNM won the 1992 general elections,
governing until 2002. The PLP returned to power in 2002
under the leadership of Perry Christie, lost in 2007 to the
FNM, still led by Hubert Ingraham, and won again in 2012,
with Perry Christie as prime minister.
Current Prime Minister Hubert Minnis led the FNM to
victory in the May 2017 elections, capturing 35 House of
Assembly seats, compared to 4 for the PLP. The country’s
stagnant economy, along with rising crime and
controversies associated with the Chinese-financed Baha
Mar resort in the capital of Nassau, led to the PLP’s

thrashing at the polls. The country’s next national elections
Source: CRS.
are due by May 2022.

The Bahamas at a Glance
Since 2019, the Bahamas has faced two major challenges:
recovery and reconstruction in the aftermath of Hurricane
Population:
385,000 (2020, IMF est.)
Dorian that struck in September 2019, and response to the
Area (square miles):
5,359, slightly smaller than
Coronavirus Disease 2019 (COVID-19) pandemic.
Connecticut (CIA)
Hurricane Dorian caused widespread damage to the
northwestern Bahamian islands of Abaco and Grand
GDP (current prices):
$11.3 bil ion (2020 est., IMF)
Bahama, with 74 confirmed deaths and many more missing.
GDP Growth (constant
2019, 1.2%; 2020, -16.3% est.;
An Inter-American Development Bank-led assessment
prices):
2021, 2.0% projected (IMF)
estimated $3.4 billion in damages and losses.
Per Capita GDP (current
$29,221 (2020 est., IMF)
The COVID-19 pandemic is having a significant public
prices):
health and economic impact on the Bahamas. As of June 1,
Life Expectancy:
73.9 years (2019, UNDP)
2021, the Bahamas reported 226 deaths from the virus,
equivalent to a mortality rate of 59 per 100,000 people,
Sources: International Monetary Fund (IMF); Central Intel igence
according to Johns Hopkins University. The procurement
Agency (CIA); United Nations Development Programme (UNDP).
and rollout of COVID-19 vaccines has been slow compared
to some countries in the region. According to the New York
The pandemic-related economic shutdown resulted in an
Times vaccination tracker, 2.2% of the population was fully
economic contraction of more than 16% in 2020, one of the
vaccinated as of June 1. The Bahamas received its first
most severe in the Caribbean, according to the International
batch of vaccines in early March as a donation from India,
Monetary Fund (IMF). The IMF projects economic
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The Bahamas: An Overview
recovery could take several years; it projects 2% economic
Bahamas Defense Force. The Bahamas participates actively
growth in 2021 and 8.5% in 2022. The IMF, Inter-
in Operation Bahamas, Turks and Caicos (OPBAT), a
American Development Bank, and World Bank have
combined Coast Guard, DEA, and government of Bahamas
provided financing to the Bahamas to support the public
partnership to combat drug smuggling to and from the
health response and economic recovery.
Bahamas. According to the State Department’s 2021
International Narcotics Control Strategy Report (INCSR),
Since tourism is the driver of the Bahamian economy and
the COVID-19 pandemic led to a drop in overall criminal
the United States is the largest tourism market, accounting
activity and illicit smuggling in early 2020, but
for about 85% of tourist arrivals, economic recovery will be
transnational criminal organizations adapted and resumed
tied to the U.S. economic recovery and vaccine rollout. On
illicit smuggling activities by the fourth quarter. The
May 1, the Bahamas exempted fully vaccinated visitors
INCSR noted that OPBAT operations helped tracked over
from COVID-19 testing requirements. Nassau will serve as
1,000 kilograms of cocaine transiting the Bahamas before
the homeport for two cruise ship lines this summer, which
being seized in the United States.
could help support tourism recovery. In April 2021,
however, the Bahamas was added to the State Department’s
The 2021 INCSR notes that as an international financial
“Do Not Travel” advisory, based on the Centers for Disease
center, the Bahamas is vulnerable to money laundering
Control and Prevention travel health notice indicating a
(financial services accounts for an estimated 15%-20% of
very high level of COVID-19 in the Bahamas.
the country’s gross domestic product). The State
Department report noted that the Bahamas took significant
In February 2021, the United Kingdom-based Bahamas
steps in 2020 to strengthen its anti-money laundering
Petroleum Company completed drilling an exploratory well
(AML) regime. In December 2020, the multilateral
90 miles west of Andros Island (and 150 miles from
Financial Action Task Force removed the Bahamas from its
Florida), but it did not find commercially viable quantities
so-called grey list of countries with deficiencies in their
of oil. Environmental groups and some Members of the
AML standards.
U.S. Congress strongly opposed the drilling because of
concerns of the potential impact of spills on the Atlantic
U.S. assistance to the Bahamas amounted to $28.6 million
Coast.
in FY2019 (latest full year available) according to the U.S.
Agency for International Development’s (USAID’s) online
Some 30,000-60,000 Haitians or persons of Haitian descent
Foreign Aid Explorer (https://explorer.usaid.gov/). USAID
live in the Bahamas, according to estimates cited in the
implemented a majority of the aid, $20.7 million, to support
State Department’s Country Reports on Human Rights
recovery in the aftermath of Hurricane Dorian. DOD
Practices for 2020. The report noted bias against those of
implemented the balance, almost $8 million, for equipment
Haitian descent, many who live in informal settlements
and training to help increase maritime and border security
with limited government services. Hurricane Dorian
and improve interdiction and other anti-drug capabilities.
displaced thousands of persons of Haitian descent, which
led to increased interethnic tensions and inequities that have
Since FY2010, the Bahamas has received support under the
persisted, according to the human rights report.
Caribbean Basin Security Initiative, a regional program that
focuses on advancing citizen security and reducing illicit
U.S.-Bahamian Relations
trafficking. Support has included the purchase and repair of
The United States enjoys close economic linkages and
maritime interdiction patrol asses; training and equipment
cooperative relations with the Bahamas, with the nearest
for OPBAT’s counternarcotics operations; and technical
Bahamian island, Bimini, just 45 miles from Florida. A
assistance, equipment, and training to strengthen Bahamian
majority of tourists visiting the Bahamas (a total of 7.2
law enforcement institutions.
million in 2019) are from the United States, according to
the State Department, highlighting the dependency of the
The United Sates also has provided $750,000 to help the
tourism sector on U.S. economic conditions. Because the
Bahamas respond to the COVID-19 pandemic as of April
Bahamas has a services-based economy, the United States
2021. In late April, the Rhode Island National Guard, which
historically has run a large merchandise trade surplus.
has partnered with the Bahamas since 2006, provided
According to the Commerce Department, U.S. imports from
aircraft to support the distribution of COVID-19 vaccine
the Bahamas amounted to $275 million in 2020, whereas
doses to Bahamians on eight remote islands.
U.S. exports totaled almost $2.9 billion.
Among other aspects of bilateral cooperation, CBP
Because the Bahamas is a major transit country for illicit
maintains preclearance facilities at airports in Nassau and
drugs bound for the United States and other markets—
Freeport for those traveling to the United States. The port of
largely marijuana from Jamaica and cocaine from South
Freeport participates in the Container Security Initiative, a
America transiting Hispaniola—cooperation on anti-drug
CBP-run program that uses a security regime to ensure that
efforts has been a central component of bilateral relations.
all containers that pose a potential risk for terrorism are
U.S. agencies—such as the Coast Guard, the Drug
identified and inspected before they are placed on vessels
Enforcement Administration (DEA), the Department of
destined for the United States. The U.S. Navy also operates
Homeland Security’s Customs and Border Protection
an underwater research facility, the Atlantic Undersea Test
(CBP), and the Department of Defense (DOD)—assist the
and Evaluation Center (AUTEC), on Andros Island.
country in drug interdiction efforts and cooperate closely
with the Royal Bahamas Police Force and the Royal
Mark P. Sullivan, Specialist in Latin American Affairs
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The Bahamas: An Overview

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